The number of house hunters has dropped considerably in July with an average of 192 on estate agents books compared to 226 the month before, reports the National Association of Estate Agents. This has dropped from 314 house hunters in July 2007 and 326 in both August and September last year.
There are a number of reasons for this reduction including the holiday season, a loss of confidence among consumer who are adopting a ‘wait and see' attitude but are hoping for an improved market in the near future. The NAEA is also concerned that the recent Stamp Duty comments will cause a further hiatus in the market.
The number of properties on agents books in July increased by a fraction up to 95 from 94 in June. However, there is a dramatic difference shown from the year before where the figure stood at 45, indicating that people do want to sell but that houses are remaining on estate agents' books for longer.
Sales have remained the same this month at 6 sales per agent. This is still down from the same time last year where an average of 10 sales was recorded. However, the stability of this figure shows that there are still sales being made even in a traditionally quiet time of the year, which is positive.
July's figures show that the percentage of first time buyers is down to 10.7% from 11.8% in June, which was the same as a year ago in July 2007.
Chris Brown, president of the NAEA, comments: "The figures reported by agents in July show that there is still an indication of stability in the market, however consumers continue to adopt a ‘wait and see' approach in the hope that there will be an improvement in the market.
"Consumers are feeling anxious and have every right to be with the Government's inability to reassure the market, especially over the issue of Stamp Duty. Decisive action in this area is needed as we are concerned that the anticipation of the suspension of stamp duty may halt the transactions in the housing market even further."
Following the release of the Royal Institution of Chartered Surveyors (RICS) July survey, Peter Bolton King, Chief Executive of the National Association of Estate Agents (NAEA), the residential sales arm of the National Federation of Property Professionals (NFOPP), said:"The latest report from RICS highlights that agents and consumers are still struggling in the current climate. However, despite this fact, the report as a whole shows some tentative signs that the decrease in housing transactions is likely to start to stabilise over the months ahead and that there may be some marginally better conditions in the market place in the near future. Indeed, these figures confirm the findings from our own survey that whilst transactions are still low the market is showing signs of levelling out.
"However, whilst aspects of this report are encouraging, I remain concerned that the optimism for the next few months may be scarred by the current uncertainty regarding stamp duty. The confused messages being sent out by the Government will undoubtedly have an impact on consumer confidence as the public is understandably confused at present about whether to buy or sell. Members of the NAEA have already seen buyers adopt a ‘wait and see' attitude as a result. This of course will have repercussions on the property market as a whole and I fear next month's figures may reflect this halt in proceedings rather than the levelling out in the market place that may have naturally ensued.
"The Government needs to clear up this uncertainty as soon as possible to help minimise the disruption to the market place and help the British economy move forward."
Date: 19th, August, 2008
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